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Recently, with the iPhone 6 hot sale, Foxconn's production capacity has also tightened, and the processing workers of Foxconn in Brazil can't help it. The strike activity revolves around Foxconn. From chip to package to application, from LED display to LED lighting, Foxconn can be described as complete and precise in the field of LED lighting. Foxconn’s head, Guo Taiming, once revealed to the media that the LED industry should be a transformation of Foxconn. This transformation includes from OEM to independent brands, from traditional electronics to emerging industries. However, from the perspective of Foxconn's layout of LEDs, there is still a long way to go with the goals set by it. The independent brands have not been established, and the road to foundry has gone further and farther. OEM orders are becoming scarcer in the layout. At the same time as the LED industry chain, Foxconn has also made some gains in the foundry business. In 2009, Foxconn began to OEM for international lighting giants such as Philips and General Electric. It is understood that in just one year, only the LED OEM orders of the two major manufacturers of Philips and General Electric, the sales of more than 200 million yuan. However, Foxconn, which hopes that the LED industry will bring about transformation, can further advance in the LED industry? To be tested. With the increasing labor costs in the mainland, more and more orders for LED lighting have already flowed to Southeast Asia, and Foxconn's LED lighting OEM orders are getting fewer and fewer. In the past, most OEM orders from Philips and General Electric were made by Foxconn. Now, Philips' orders have gradually turned to other LED lighting companies in China, and they have shared orders from Foxconn. The fate of Foxconn's diversion is not only in the field of lighting, even Apple's orders are diverted from Foxconn, from 100 from Foxconn production to 80 by Foxconn. The strategic adjustment of Apple's decentralized suppliers will undoubtedly make Guo Taiming's concerns clearer. Confirmed. Yang Guoqing, general manager of Shenzhen Ruisi Spectrum Lighting Co., Ltd. admitted that with the gradual disappearance of China's demographic dividend and the increase in production costs, OEM is obviously not a long-term business. In addition, in the past few years, Foxconn has laid out the LED industry in a big way, but compared with the actions of listed companies such as Dehao Runda (002005, stocks) and Sanan Optoelectronics (600703, stocks) in the past two years, it can be described as a small witch. These advantages of Foxconn are becoming less and less obvious. Mainland enterprises are growing rapidly. With the establishment of automated production lines and industry standards, the cost and product technology of some mainland enterprises have been significantly better than Foxconn. Industry peers said that Foxconn has formed a crisis in the field of LED lighting, and the advantages of foundry are becoming less and less obvious. At first, the industry was scared because of the entry of this giant. However, from the current situation, many companies have not regarded Foxconn as a competitor. This is because more and more LED lighting companies are currently available, and the cost is getting lower and lower. More and more companies can be found for Philips and other lighting manufacturers. For example, as early as two years ago, Taiwan's Lite-On Technology joined hands with Jingyuan Optoelectronics and the mainland's system factory to squeeze Longda and win Philips' LED lighting orders. Domestic companies such as Snowlight Lighting also became the representative of Philips LED lighting. Factory. Some companies also said that in the past few years, LED midstream packaging technology has basically mastered the hands of Taiwanese companies. However, the current domestic LED packaging technology has made rapid progress, and many companies can do OEM work for European, American and Japanese companies. In the context of globalization, the living environment of Foxconn foundry companies is the most difficult. More importantly, Foxconn is doing OEM work, but on the other hand is taking its own brand route, which also makes those lighting giants cautious. Taking the road of independent brands In the field of LED, Foxconn is trying to take its own brand route and build a complete LED industry chain. But this transformation is not that easy. Foxconn, which has grown on the foundry road, is not satisfied with the label of the foundry factory. Guo Taiming also hopes to achieve transformation in a certain field, but in the field of consumer electronics, there are already many independent brands. If Foxconn wants to cut in from here, The difficulty is almost beyond imagination. LED lighting is an emerging industry and the trend of the times, but the strong brands in this industry have not yet appeared. For Foxconn, this is the breakthrough point of transformation. The author understands that among the products produced by Foxconn, only the LED products are printed with the FOXCONN brand label. While doing OEM for international lighting giants such as Philips and General Electric, Foxconn is also taking its own brand in the field of LED display and LED lighting products. This is also the only independent brand of Foxconn. Foxconn hopes to take advantage of the emerging field of LED to achieve transformation and upgrade, so as to step out of the first step of independent brand breakthrough. Yang Guoqing said. However, despite the unparalleled manufacturing cost advantages of others, Foxconn's LED brand is not the same. Since Foxconn began to transform three years ago, Foxconn's brand has not been so loud. According to industry insiders, as a foundry company, Foxconn generally has a good production base, but because it has not operated its own brand and lacks marketing teams and channels, it has become a fatal injury to Foxconn's transformation. In fact, Guo Taiming also knows his shortcomings and has made great efforts in the channels. The reporter learned that Guo Taiming had conceived of making Foxconn a new business empire that integrates e-commerce, modern logistics and technology services. According to the plan, Foxconn will build an omni-channel system in the future: its own city in the first-line city layout; cyber digital main attack professional IT stores; Wanma Benteng strive to cover the third-line or even six-line towns; dare to create digital in large supermarkets Force expansion; Flying Tiger Tesco focuses on B2C e-commerce. These channels are mainly concentrated in electronic digital products, and reporters have only found two or three non-Foxconn LED lighting products on the Flying Tiger Tesco website. Yang Guoqing introduced that at this stage, the establishment of Foxconn LED product sales channels is still based on the development of dealers and bidding methods, and has not yet entered the company's traditional electronic sales channels. The author understands that Foxconn's LED business revenue is mainly derived from government orders, brand OEMs, and the group's own lighting replacement. Although Foxconn has invested in LEDs in many parts of the country, products marked with the Foxconn trademark are difficult to see in the market. Lang Xianping once said that Foxconn is a big ship, and it is not easy to turn around. The transformation of foundry companies is not easy, especially the road to creating their own brands is even more uneven. From forming a team to achieving profitability, Foxconn still has a long way to go.